04 ACTIVITY 3

MERCK
1. Which between Milton Friedman's and Archie Carroll's views on business
responsibility is being demonstrated in the given case? Explain your chosen view.
• Carroll's view of corporate responsibility holds that a company's primary
responsibility cannot be to maximize profits. Archie Carroll's corporate responsibility
is demonstrated in the case because it serves as an illustration of the four
responsibilities of business: economic, legal, ethical, and discretionary. Economic
because in order for a firm to pay off its obligations and increase shareholder value,
it must produce goods and services that are desirable to society. Legal because when
they hire and promote people, companies do not discriminate on the basis of
characteristics unrelated to employment, such as color, gender, or religion. They are
moral because they owe it to others to follow the established rules of conduct. This
takes us to discretionary, where they too engage in entirely voluntary activities like
the rest of society.

2. Who are the primary stakeholders of Merck based on the case study?
• The primary stakeholders for Merck are customers, shareholders, employees,
competing businesses, and the government. Primary stakeholders are those
individuals or groups whose perspective is the focus of the risk study. However, due
to the increasing attention being paid to corporate social responsibility, the concept
has been expanded to include communities, governments, and trade associations.

3. Who are the secondary stakeholders of Merck based on the case study?
• Due to the possibility of harmful side effects from using Merck's products, patients
are considered secondary stakeholders in the company. Stakeholders are those with
an interest in the firm and the ability to affect how it runs. They are often external to
the company.

4. How do the stakeholders of Merck influence the strategic decisions of the company?
• Decision-making, goals and objectives, operational difficulties, sales, expenses, and
profitability are all commonly impacted by stakeholders in a firm. Owners hold the
most sway since they decide what the company does and finance its establishment
and expansion.